SEC Closes Case Against Uniswap: DeFi Wins, But Is the Market Timing Wrong?

The United States Securities and Exchange Commission (SEC) recently closed its investigation into Uniswap, one of the largest DeFi platforms in the world. This decision not to take enforcement action against Uniswap is seen as a major victory for the DeFi sector, as it acknowledges that the decentralized exchange operates within the law. It also validates Uniswap’s offerings, potentially making UNI one of the best cryptocurrencies to buy in 2025.

The probe into Uniswap started in 2021 and escalated with a Wells notice in April 2024. The SEC alleged that Uniswap was engaging in illegal activities such as unregistered broker activity and issuing unregistered securities. However, after months of pushback and a 40-page rebuttal from Uniswap, the SEC dropped the case. This confirms that Uniswap operates outside of the agency’s regulatory framework.

The victory for Uniswap is significant as it sets a precedent for other DeFi projects under scrutiny. It suggests that decentralized, smart contract-based platforms are not considered legally financial entities by the SEC. Moving forward, Uniswap expressed willingness to engage with regulators and lawmakers to develop clear laws and rules for new technologies like DeFi.

Despite this positive development for Uniswap, the timing comes during a turbulent period for crypto markets, with bears currently in control. As a result, UNI prices are under pressure and may dip below $7 in the coming days.

In conclusion, while the closure of the SEC case against Uniswap is a win for DeFi, market conditions may impact UNI prices in the short term.